Telefónica and Vodafone in Talks to Merge Spanish Operations

Telefónica and Vodafone Group PLC are in talks to merge their Spanish operations, creating a telecom giant in the country.

The deal would combine the two biggest mobile operators in Spain, with a combined market share of around 55%. The combined entity would have annual revenues of around €20 billion ($22 billion) and would be the largest mobile operator in Spain, ahead of Orange S.A. and MásMóvil Ibercom.

The deal is still in the early stages of negotiation, and there is no guarantee that it will be completed. However, if the deal does go through, it would be a major shake-up of the Spanish telecoms market.

Telefónica is the incumbent operator in Spain, and has been losing market share to Vodafone in recent years. Vodafone is the second largest mobile operator in Spain, and has been growing its market share rapidly in recent years.

The merger would give Telefónica and Vodafone a much stronger position in the Spanish market, and would allow them to compete more effectively with Orange and MásMóvil Ibercom.

The deal would also be a major boost to the Spanish economy. The combined entity would be a major employer in Spain, and would invest heavily in the country's infrastructure.

The merger is likely to face regulatory scrutiny, as it would create a dominant player in the Spanish telecoms market. However, Telefónica and Vodafone are confident that they will be able to address any regulatory concerns.